Hong Kong: HANG SENG INDEX (.HSI) slips as investors unmoved by budget boost

Hong Kong: HANG SENG INDEX (.HSI) slips as investors unmoved by budget boost

Hong Kong: HANG SENG INDEX (.HSI) slips as investors unmoved by budget boost

Hong Kong shares went into the break with fresh losses on Thursday as traders unmoved by a big-spending budget from the city’s finance chief aimed at shoring up the struggling economy.

The Hang Seng Index fell 0.7 percent, to 26,519 by the break.

On the mainland, the Shanghai Composite Index rise 0.5 percent to 3,001, while the Shenzhen Composite Index added more than 1 percent, to 1,910.

Most other Asian markets fell again as coronavirus infections surged outside China with more new countries reporting cases and analysts warning of more pain ahead for investors.

“There’s more room potentially to go with this correction,” Katie Koch, at Goldman Sachs Asset Management, said. “There is still so much more uncertainty around how coronavirus is going to spread, particularly in the US.”

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 27,729.24.

The projected lower bound is: 25,819.38.

The projected closing price is: 26,774.31.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 23.2152. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 39.68. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 37 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -123.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 82.129 at 26,778.619. Volume was 33% above average (neutral) and Bollinger Bands were 4% narrower than normal.

Open     High      Low     Close     Volume___
26,529.17026,849.57026,419.97126,778.6192,110,369,664
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 27,306.84 27,791.05 27,226.70
Volatility: 16 22 20
Volume: 1,739,600,512 1,677,518,464 1,657,799,936

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

HANG SENG INDEX is currently 1.6% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 21 periods.

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